June 1, 2006

Enron Corp. announced today that it reached an agreement with Vinson & Elkins LLP to settle all claims in connection with the Enron Bankruptcy Estate.  According to the terms of the agreement, Vinson & Elkins will pay Enron $30 million in cash, and waive its claims for prior services of approximately $3.9 million against the Estate.

"We are pleased with this settlement, and remain focused on continuing to resolve remaining claims with major financial institutions directly involved in Enron's collapse," said John J. Ray III, Enron's President and Board Chairman.

The settlement remains subject to the approval of the United States Bankruptcy Court for the Southern District of New York.

Enron is represented in this matter by McKool Smith, P.C. 

Enron’s Internet address is www.enron.com.